Hello
You are right Peg installing latest ProcessorExpert release will not add any functionality to the P&E debugger.
Basically the HCS08 multiink/Cycclone Pro connection does not provide you with a way to mask interrupt while stepping.
It is supported in HC12 tools, but we are using another technology there.
With CW HC08 if you do not want to step into interrupt functions, you need to use Run to cursor to the next line instead of using step (or alternatively you can mask the interrupt setting the I bit in the CCR register before you perform the step).
When you say you get that working with V3.1 which connection (target interface) were you using there.
CrasyCat